Executive summary

4G LTE network rollouts gain momentum in Kyrgyzstan

The telecommunications sector in Kyrgyzstan has been generally characterised by an open market that welcomes both foreign and domestic investors. However there also remains a culture of poor transparency in some aspects of corporate behaviour; this needs to be addressed if the telecoms market is to reach its full potential.

The number of fixed lines has been falling since 2011. The growth of the mobile market is the main driver of this fall. This decline is expected to continue over the next five years to 2022 however at a slower rate.

During 2012 to 2017 the internet penetration in Kyrgyzstan has been increasing steadily. Fixed broadband penetration continues to grow strongly but from a very small base. Moderate growth is predicted to continue over the next five years to 2022. Fixed broadband penetration rates will continue to be much lower in the long term than mobile broadband penetration rates as mobile networks will continue to dominate fixed line networks.

Although there are four mobile networks in operation, the market is dominated by the two operators – Sky Mobile (Beeline) and MegaCom – which between them continue to hold onto a major chunk of the total mobile subscriber base.

The mobile subscriber growth rate in 2017 was very low due to a mature mobile market. Further slow growth is predicted over the next five years to 2022. By that year the market will reach mobile subscriber penetration of over 130%.

Mobile broadband continues to grow strongly in Kyrgyzstan. The mobile broadband subscriber penetration has grown strongly driven by a mature mobile subscriber base and rollout of 4G LTE mobile networks. 4G networks now covers a significant proportion of the nation as the major mobile operators gain momentum in their rollout of these faster networks.

Key developments:

Legislation was passed mandating the launch of mobile number portability (MNP) in April 2018.

Internet penetration in Kyrgyzstan has been increasing steadily, reaching over 30%.

Mobile broadband continues to grow strongly.

The major mobile operators continue to rollout out 4G LTE mobile networks.

The number of fixed line is declining fairly quickly driven by rollout of mobile networks.